U.S. and Mexico Reach New Air Service Agreement

Tuesday, November 25, 2014

Sandler, Travis & Rosenberg Trade Report

The Department of Transportation announced Nov. 21 that the United States and Mexico have reached a new, modernized air service agreement that will expand opportunities for passenger and cargo carriers to provide service between the two countries and strengthen bilateral economic ties. According to a DOT press release, the new arrangement includes unlimited market access for U.S. and Mexican air carriers, improved intermodal rights, pricing flexibility and other important commercial rights.

More specifically, DOT indicates that the two countries have agreed to remove the limitations on the number of airlines that may provide passenger service in all U.S.-Mexico city pairs. Cargo airlines will also have expanded opportunities to provide service to new destinations that were not available under the current agreement and offer services from the U.S. to Mexico and beyond Mexico to other countries. The agreement will enter into force on Jan. 1, 2016, after both sides have completed all relevant domestic implementation procedures.